Idaho State Statutes - Idaho Attorney Directory

EXPRESSED, PERMITTED AND IMPLIED PROVISIONS OF MOTOR VEHICLE
LIABILITY POLICY. (1) An owner's policy of liability insurance shall:
(a) Designate by explicit description or by appropriate reference all
motor vehicles with respect to which coverage is to be granted; and
(b) Insure the person named therein and any other person, as insured,
using any such described motor vehicles with the express or implied
permission of the named insured, against loss from the liability imposed
by law for damages arising out of the ownership, maintenance or use of the
motor vehicles within the United States of America or the Dominion of
Canada, subject to limits exclusive of interest and costs, with respect to
each motor vehicle, as provided in section 49-117, Idaho Code.
(2) An operator's policy of liability insurance shall insure the person
named as insured therein against loss from the liability imposed upon him by
law for damages arising out of the use by him of any motor vehicle not owned
by him, within the same territorial limits and subject to the same limits of
liability as are set forth in subsection (1) of this section with respect to
an owner's policy of liability insurance.
(3) A motor vehicle liability policy shall state the name and address of
the named insured, the coverage afforded by the policy, the premium charged
therefor, the policy period and the limits of liability, and shall contain an
agreement or be indorsed that insurance is provided in accordance with the
coverage defined in this chapter as respects bodily injury and death or
property damage, or both, and is subject to all the provisions of this
chapter.
(4) A motor vehicle liability policy shall not insure any liability under
any worker's compensation law as provided in title 72, Idaho Code, nor any
liability on account of bodily injury to or death of an employee of the
insured while engaged in the employment, other than domestic, of the insured,
or while engaged in the operation, maintenance or repair of any described
motor vehicle nor any liability for damage to property owned by, rented to, in
charge of or transported by the insured.
(5) Every motor vehicle liability policy shall be subject to the
following provisions which need not be contained therein:
(a) The policy may not be canceled or annulled as to any liability by any
agreement between the insurance carrier and the insured after the
occurrence of any injury or damage covered by the motor vehicle liability
policy.
(b) Satisfaction by the insured of a judgment for injury or damage shall
not be a condition precedent to the right or duty of the insurance carrier
to make payment on account of the injury or damage.
(c) The insurance carrier shall have the right to settle any claim
covered by the policy, and if the settlement is made in good faith, the
amount shall be deductible from the limits of liability specified in
subsection (1)(b) of this section.
(d) The policy and its written application, if any, and any rider or
indorsement which does not conflict with the provisions of this chapter
shall constitute the entire contract between the parties.
(6) Any policy which grants the coverage required for a motor vehicle
liability policy may also grant any lawful coverage in excess of or in
addition to the coverage specified for a motor vehicle liability policy, and
any excess or additional coverage shall not be subject to the provisions of
this chapter. With respect to a policy which grants an excess of additional
coverage the term "motor vehicle liability policy" shall apply only to that
part of the coverage which is required by this section.
(7) Any motor vehicle liability policy may provide that the insured shall
reimburse the insurance carrier for any payment the insurance carrier would
not have been obligated to make under the terms of the policy except for the
provisions of this chapter.
(8) Any motor vehicle liability policy may provide for the prorating of
the insurance with other valid and collectible insurance.
(9) The requirements for a motor vehicle liability policy may be
fulfilled by the policies of one (1) or more insurance carriers which policies
together meet the requirements of this chapter.
(10) Any binder issued pending the issuance of a motor vehicle liability
policy shall be deemed to fulfill the requirements for such a policy.
(11) When the negligent operation of a loaned vehicle results in the death
or injury to a person or personal property, except for the loaned vehicle, and
at the time of the negligent operation of the loaned vehicle the operator of
the loaned vehicle is insured under a motor vehicle liability policy complying
with the financial responsibility law of this state, primary coverage for the
death of or injury to a person or personal property, except for the loaned
vehicle, shall be provided by the operator's motor vehicle liability policy.
The insurance policy of the owner of the loaned vehicle shall provide
secondary or excess coverage for the death of or injury to a person or
personal property, however the loaned vehicle owner's insurance shall provide
primary coverage for damage to the loaned vehicle.
(a) For the purpose of this subsection, "loaned vehicle" means a motor
vehicle which is provided for temporary use without charge to the operator
by an entity licensed under chapter 16, title 49, Idaho Code, for the
purpose of demonstrating the vehicle to the operator as a prospective
purchaser, or as a convenience to the operator during the repairing or
servicing of a motor vehicle for the operator, regardless of whether such
repair or service is performed by the owner of the loaned vehicle or by
some other person or business.
(b) Should the owner of a motor vehicle receive any compensation from or
on behalf of the operator for the temporary use of the motor vehicle,
excluding any compensation provided to the owner as a result of the
repairing or servicing of a motor vehicle for the operator, the owner's
insurance coverage shall be primary and the operator's motor vehicle
insurance shall be secondary or excess.

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